AUB Group will sell its holding in health and rehabilitation group Altius to The Riverside Company after flagging last year that it was looking to exit the business.

The sale will result in a post-tax profit of $10 million, after expensing $5.4 million related to a put and call option in favour of an existing Altius minority shareholder. Neither of the amounts will be included in underlying net profit.

“This sale reflects AUB’s strategy to refocus on the core businesses of insurance broking and underwriting agencies,” CEO Mike Emmett said.

AUB will receive net cash proceeds of about $57 million, reducing corporate borrowings and providing additional balance sheet headroom for future mergers and acquisitions and strategic investments.

Riverside, a global private equity firm, says Altius was founded in 2001 and has 30 locations across Australia.

“We plan to expand the company’s geographic footprint across the region as well as increase services with a focus on providing physical and psychological health and wellness solutions to corporations, government entities and their employees,” Partner Nick Speer said.

Completion of the transaction is subject to the usual change of control consents and is expected before the end of April.